Prime Highlights
- Jumia has raised $50 million to strengthen its African e-commerce and logistics operations.
- The company expects to reach profitability for the first time in the fourth quarter.
Key Facts
- The IFC is investing about $25 million in Jumia, with Axian Telecom and other investors also participating.
- Jumia operates in eight African markets and is focusing on cost control and disciplined expansion.
Background
African e-commerce company Jumia Technologies has raised $50 million in equity funding as it works towards its first profit. The International Finance Corporation (IFC) led the funding, contributing about $25 million, while Axian Telecom and other investors also joined the round.
The funding will support Jumia’s growth across its eight African markets. The company plans to strengthen its online marketplace and logistics network while improving access to digital commerce for small businesses.
Jumia said the investment will help small businesses reach more customers, increase sales and create jobs. Better marketplace, logistics and digital payment services could also help businesses expand beyond their local markets.
The funding comes as Jumia follows a more disciplined growth strategy. The company has moved away from rapid expansion and is focusing on improving efficiency and controlling costs.
Jumia has consolidated warehouses, reviewed spending and become more selective about entering new markets. The company is also working to build a leaner business as higher fuel costs and inflation create pressure across its markets.
Jumia CEO Francis Dufay said the IFC investment supports the company’s efforts to build a stronger and more sustainable business. IFC executive Farid Fezoua said the investment would support job creation, digital supply chains and greater private investment in Africa.
Founded about 15 years ago, Jumia operates across eight African markets and aims to reach profitability after years of losses. Dufay said the company expects to report its first profit in the fourth quarter.
The funding gives Jumia additional capital to improve its operations while pursuing profitability and expanding digital commerce opportunities for businesses and consumers across Africa.
